8/5/2024
By Charles Payne CEO & Principal Analyst

“When the price of a stock can be influenced by a ‘herd’ on Wall Street with prices set at the margin by the most emotional person, the greediest person, or the most depressed person, it is hard to argue that the market always prices rationally. Market prices are frequently nonsensical.”

-Warren Buffett, 1984

To paraphrase Yogi Berra, it's ‘not’ deja vu all over again. To underscore a point, I began this week’s ‘Payne’s Perspective’ with the same quote as last week’s edition.

The stock market is not rational, and 2024 has been more nonsensical than most years. Investors chased seven stocks in a game of musical chairs meets the “Greater Fool” theory. The twist is that those seven stocks are unlike any companies that preceded them. There have been monopolies and game-changers, but this is unique in the stock market's history.

However, investing has rules similar to those of physics. Those rules have kicked in, and now the “Mag Seven” has given up big chunks of gains.

Charles Payne
Wall Street Strategies

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